After pondering the idea of CSR transparency I cannot say I have found concrete answers regarding what the motives are which drive corporations to be candid about their CSR actions. After considering all that I have read though, I have personally concluded that the following motivations factor into the decision to publish a CSR report:
1) Keeping up with the latest business trends. CSR reports are by no means mandatory yet an increasing number of corporations have decided to produce one. The buzz throughout the corporate world seems to be that in order to be successful you must be transparent.
2) Pleasing stakeholders. From my research I have deduced that corporations, on the whole, do not create these reports to attract media attention, as it can backfire (see my earlier example about Ford). Rather, they produce them for investors, employees, pressure groups and a variety of other key stakeholders. Those who have vital interests in a company increasingly demand to know more about how a business operates both ethically and responsibility.
3) Pride. I understand that some people may not agree with this, but I do believe a number of corporations are truly dedicated to being socially responsible. If a corporation has devoted their resources and money to a sustainable CSR programme, a CSR report allows them to detail their progress, goals, and issues. It is a way for them to publicly display the work they have done and plan to continue doing.
I am sure there are a number of other motivations involved, and I am curious to find out which motivation factors more heavily then the others. I am sure it varies from corporation to corporation.
What do you think?
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2 comments:
CSR is increasingly playing a major role in impacting on corporate behaviour and lifestyles. Many firms have to publish reports as part of their Corporate Governance (the process by which they are directed and controlled) and covers principles such as disclosure, transparency, integrity and ethical behaviour. It makes business sense for companies to include CSR as part of their corporate strategy. The difference being - the way companies implement CSR - as a way to bring in economic benefits for both the benefactor and the beneficiary or just a PR stunt!
I think you set up a very interesting list here. I agree that there are probably various factors driving CSR but although there might be companies which practice what I would call "real CSR", it cannot be denied, that, whatever positive outcome there might be from doing CSR would not be appreciated. Without a positive outcome there might be, and if it's only that they feel better, there simply would be no CSR. Or why would you donate?
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